Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

Effective Date: 04/18/2008, Docket: RP08-319-000, Status: Effective

Original Sheet No. 448 Original Sheet No. 448 : Pending

GENERAL TERMS AND CONDITIONS

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(5) Natural reserves the right to reinstitute this

tracking mechanism based on Commission action regarding its

rehearing request filed December 29, 1995, in Docket No. RP95-326.

21.4 BUYOUT AND BUYDOWN COSTS

If, in Natural's judgment, the costs borne by its

customers will be reduced by the buyout or buydown of Account

No. 858 contracts reflected in rates pursuant to this Section,

Natural may enter into settlement agreements for the buyout and

buydown of such contracts and may reflect the resulting costs in the

semi-annual tracking filings under Section 21.3 of these General

Terms and Conditions. Subject to the following sentence, the costs

of any buyout or buydown shall be recovered by amortizing such cost

on a levelized basis over a period of two (2) years and reflecting

the amount so amortized in such semi-annual tracking filings. In

the case of any buyout or buydown entered into prior to December 1,

1994 and reflected in the initial tracking filing or the tracking

filings to be effective June 1, 1994 or December 1, 1994, the buyout

or buydown costs shall be amortized over the remainder of the period

ended November 30, 1995.

21.5 CARRYING CHARGES

Carrying costs at the interest rate allowed under the

Commission's Regulations, 18 C.F.R. 154.501(d), shall be applicable

to any adjustments under Section 21.3 of these General Terms and

Conditions and to any amount amortized under Section 21.4 of these

General Terms and Conditions. Carrying costs shall apply from the

first of the month after Natural begins to incur Account No. 858

costs or makes payment of buyout or buydown costs which exceed the

level of costs being recovered hereunder and shall continue until

the costs are recovered. If, in developing tracking rates

hereunder, Natural reflects any anticipated costs which are not in

fact incurred, it shall pay interest on any funds collected until

returned to the customer. Adjustments for such carrying costs shall

be made in the semi-annual tracking filings under Section 21.3 of

these General Terms and Conditions.

21.6 RELEASE OF ACCOUNT NO. 858 AGREEMENTS

(a) This provision shall apply to Upstream Capacity,

which shall mean Account No. 858 contracts which Natural was unable

to assign and is unable to buyout or buydown consistent with Section

21.4 of these General Terms and Conditions; provided, however, that

(i) Upstream Capacity shall exclude the arrangements identified in

Section 21.2(c)(1) hereof, and (ii) Upstream Capacity shall include